The Ultimo Hotel listed with $100 million plus expectations
The Ultimo Hotel, currently operated by Rydges Hotels Limited, has hit the market with sales expectations exceeding $100 million.
The 1,584 square metre property, which includes the 4-star rated boutique hotel, comprising 95 guest rooms, and ten retail tenancies, is being traded through Savills Australia.
Under a hotel management agreement, Rydges will continue to operate the hotel for the next three years unless a termination without cause provision is invoked with an 18-month notice.
Candidates have the option of continuing management with Rydges following the cessation of the five-year agreement.
The site offers one basement level tenancy plus nine high exposure ground level tenancies with current tenants including NAB, 7-Eleven, D1 Karaoke Sydney, No.1 Malatown, Dodee Paidang and Bancho Bar.
The building was converted to the current hotel in 1988 and subsequently renovated in 2016.
An additional 13 storey increase is possible subject to council approval (STCA), in addition to re-leasing the retail tenancies as expiries arise or strata subdivide the retail space and sell off individually
“The chance of one of these island sites coming to market is extremely rare in Sydney, especially in the Southern CBD,” said Savills director Stuart Cox.
Directly opposite Market City, The Ultimo is within close proximity to neighbouring landmarks, including Darling Harbour precinct, Capitol Theatre and the International Convention Centre.
Public transport is readily available in the form of rail, light rail and bus services, approximately 150 metres from the site.
The property is offered for sale via an International Expressions of Interest campaign closing September 24.
